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Records $1.1 billion goods trade deficit in August
Canada recorded a $1.1 billion goods trade deficit in August as crude oil exports fell, driven mainly by lower prices for the commodity that is central to the country’s economy.
The median expectation in a Bloomberg survey was for a deficit of $500 million. Statistics Canada also revised July’s trade balance down from a surplus to a deficit of $290 million.
Given revisions to previous months, the data for August mark Canada’s sixth straight monthly trade deficit.
Exports fell one per cent overall in August, compared with a 0.3 per cent rise in imports.
The data were delayed by approximately 30 minutes on Tuesday morning because Statistics Canada experienced a technical issue with its website. The report went live around 9 a.m. Ottawa time.
Canada’s exports of energy products posted the largest decrease in August, mainly on lower exports of crude oil mostly attributable to concerns over demand exerting downward pressure on prices.
Exports of forestry products and building and packaging materials dropped by 5.5 per cent to $3.8 billion in August, their lowest level since July 2023. Lower shipments of pulp and paper to China and the United States led the decline, potentially due to a rail transport work stoppage in August, Statistics Canada said.
Motor vehicle and parts exports increased 5.1 per cent and partly offset the decrease in total exports in August. Exports of passenger vehicles contributed most to the increase, mainly due to higher production of light trucks in Canada. This follows two straight months of sharp declines.
Despite the monthly increase, exports of passenger vehicles were down nearly 20 per cent in August compared with the high seen in October 2023. The downward trend is due in part to lower production in Canada.
Imports of motor vehicles and parts rose 2.4 per cent in August and were the biggest contributor to overall growth. Imports of industrial machinery, equipment and parts also saw an increase in value similar to that of automobiles.
In volume terms, Canada’s exports rose 0.1 per cent in August while imports increased 0.4 per cent. The country’s trade surplus with the U.S. narrowed to $8 billion from $10.5 billion.
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